Calculate how much you can save with an electric vehicle novated lease in Australia. Eligible EVs under the luxury car tax threshold are FBT-exempt, which can materially reduce after-tax ownership costs.
FBT exemptionEV vs petrolPre-tax savings
01 —INPUTS
Amount financed or paid privately, including on-road costs.
Use the employer or lease quote value. Registration and stamp duty are excluded; dealer delivery and fitted accessories are generally included. Defaults to purchase price if blank.
FBT exemption: BEV/FCEV only; PHEVs eligible only with pre-1-Apr-2025 commitment.
Must be on/after 1 July 2022 for any exemption.
Used for the legislated 2027 and 2029 EV discount transition and grandfathering.
RFBA from a novated lease adds to income-for-MLS purposes even when FBT is $0.
Residual: 28.13%
Finance & running-cost assumptions
Check your employer's policy or lease quote; salary packaging can reduce ordinary time earnings for SG.
02 —RESULTS
Awaiting input
Enter your salary and vehicle price to compare a novated lease with private finance
Since 1 July 2022, eligible electric vehicles provided through novated leases are exempt from Fringe Benefits Tax (FBT). This is a significant benefit because FBT can add thousands of dollars to the cost of a salary-packaged vehicle.
FBT discount
Eligible arrangements receive the statutory discount applicable to their value and start date
Pre-Tax Payments
Lease and running costs come from pre-tax salary, reducing your taxable income
Editable Running Costs
Compare electricity, fuel and servicing using assumptions you can change
Which vehicles qualify?
→Zero or low emissions: Battery electric, hydrogen fuel cell, or plug-in hybrid (until April 2025)
→First used after 1 July 2022: New or demonstrator vehicles meeting this date
→LCT never payable: check the quote against the $91,661 fuel-efficient threshold for 2026-27
Use the values from your quote
Enter the purchase amount separately from the FBT base value, plus the lease comparison rate, private-finance rate and arrangement start date. The FBT base generally excludes registration and stamp duty, so a drive-away price alone is not a reliable exemption test.
Considering a petrol, hybrid, or general novated lease comparison instead? See the Novated Lease Calculator for the non-EV-specific breakdown of pre-tax savings and the Employee Contribution Method.
FAQ
What is the EV FBT exemption?
From 1 July 2022, eligible zero or low emissions cars provided for employee private use can receive the Electric Car Discount if luxury car tax has never been payable. The 2026-27 fuel-efficient vehicle LCT threshold is $91,661. The legislated transition changes the statutory rate for some arrangements from 1 April 2027 and 1 April 2029, which the calculator models separately.
How much can I save with an EV novated lease?
Savings depend on the lease quote, private-finance rate, salary, FBT base value, arrangement date, running costs, residual and your employer's super treatment. Enter the figures from your quote: the calculator compares the same EV under novated lease and private finance instead of assuming a typical saving.
Does the FBT exemption apply to plug-in hybrids?
From 1 April 2025, PHEVs are no longer a qualifying electric car for the exemption. PHEVs can remain exempt only if (a) their use was exempt before 1 April 2025 AND (b) there is a financially binding commitment in place before that date to continue providing the car for private use.
Do I still have to report anything if my EV is FBT-exempt?
Yes. Even when FBT payable is $0, the employer must report the grossed-up notional taxable value on your income statement as a Reportable Fringe Benefits Amount (RFBA). The RFBA flows into income tests for the Medicare Levy Surcharge, HELP repayments, Division 293 super tax, Family Tax Benefit, Child Care Subsidy, spouse super tax offset and the Private Health Rebate. The 2026-27 Type 2 gross-up rate is 1.8868.
What changed with the LCT 'fuel-efficient' definition on 1 July 2025?
From 1 July 2025 the fuel-efficient threshold ($91,661 for 2026-27) applies only to vehicles with fuel consumption not exceeding 3.5 L/100 km. The calculator asks for the FBT/LCT base from your quote rather than attempting to infer LCT treatment from a drive-away price.
What happens if the EV costs more than $91,661?
If luxury car tax has been payable on the car, it does not qualify for the Electric Car Discount. The standard car FBT rules can then apply, although an after-tax employee contribution may reduce the taxable value.
What's included in the novated lease running costs?
Running costs typically include: electricity/fuel, comprehensive insurance, registration and CTP, scheduled servicing, tyres, and roadside assistance. All these costs come from your pre-tax salary, maximising your tax savings.
Tax Accuracy & Sources
Reviewed: March 2026 · Tax year: 2026-27
Estimates EV novated lease and private-finance costs using the entered comparison rates, ATO minimum residual, FBT discount schedule, RFBA, running costs and optional SG treatment. It does not model provider fees, GST credits/refunds, days unavailable for private use, resale value, or a lender's exact quote.